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Brazil’s Revenue Federal Bureau (RFB) has updated the tax code. The new edition provides penalties for traders who do not declare income from transactions with bitcoin and other cryptocurrencies.
The RFB introduced an addition to previous provisions promulgated in August, according to which Brazilian citizens are required to report to the tax authorities on all transactions made with cryptocurrencies. Those who fail to file a Declaration of their digital asset transactions will be fined between 500 and 1,500 Brazilian reais ($120-$360).
This initiative is aimed at combating money laundering, terrorist financing and tax evasion.
The already implemented tax code applies to individuals, companies and brokers, and also applies to all activities related to cryptocurrencies: trading, donations, exchanges, as well as depositing and withdrawing digital assets.
The new rules may also affect cryptocurrency exchanges, since the RFB system is required to provide information about transactions and user data. If it is not used, exchanges will not be able to meet the requirements for the provision of data.